Debt crisis in Eurozone will intensify next year
Tuesday, 14 December 2010
Fazle Rashid
NEW YORK, Dec 13: Eurozone countries will have to refinance more debt next year than any time before the launch of euro. The investors have warned that debt crisis in the region will intensify next year. Eurozone will have to refinance $740 billion in 2011, biggest amount since the launch of single currency Pressure of refinancing will force Portugal to seek emergency loan from eurozone bail out fund as it follows Ireland and Greece into the casualty room.
There is a fear that Spain, the fourth largest economy of Europe, could be sucked into the crisis. Ron Paul, Federal Reserve Watchdog in the House of Representatives has warned the US is on the verge of a currency crisis brought about by monetary policy and promised to effect drastic audit of the central bank.
Fed chairman Ben Bernanke has stoutly defended infusion of $600 billion into the economy. Ron Paul went on to insist Fed's policy will end with a catastrophic dollar crisis. The surge in cross-border lending has come to an abrupt halt due to contraction of approximately $100 billion in lendings to banks in eurozone. This will put countries to difficulties dependent on cross border flow. The Bank of International Settlement (BIS) said cross border lending grew after the collapse of Lehman Brothers.
There have been significant contraction of cross border lending in Greece, Portugal, Ireland and Spain. China is the biggest beneficiary of the cross-border lending. China will step up efforts at containing inflation in the wake of price jumping by more than five percent in November. Government's goal is to battle inflation without jeopardising growth.
Strategic economic restructuring will be accelerated and stabilising price will be given more importance, a policymaker said. China's turbocharged economy has raced over all others. But economists are now airing fears that China pillar of strength during global financial meltdown will face difficulties ahead. China's surge could be halted by soaring inflation, mounting government debts and a possible asset bubbles, they warned. Two Credit Rating Companies Moody's and Fitch Ratings have said China is poised for growth.
A slowdown in China now growing at 10 per cent would be a serious blow to the global economy since China's voracious demand for natural resources is helping prop up growth in Asia and South America even as the US and EU struggle, an analyst said. A large part of United States has been lashed by snowfall. States like Milennesota and Chicago have recorded four tonnes of snowfall during the past few days. The United States is passing through a severe cold wave.
NEW YORK, Dec 13: Eurozone countries will have to refinance more debt next year than any time before the launch of euro. The investors have warned that debt crisis in the region will intensify next year. Eurozone will have to refinance $740 billion in 2011, biggest amount since the launch of single currency Pressure of refinancing will force Portugal to seek emergency loan from eurozone bail out fund as it follows Ireland and Greece into the casualty room.
There is a fear that Spain, the fourth largest economy of Europe, could be sucked into the crisis. Ron Paul, Federal Reserve Watchdog in the House of Representatives has warned the US is on the verge of a currency crisis brought about by monetary policy and promised to effect drastic audit of the central bank.
Fed chairman Ben Bernanke has stoutly defended infusion of $600 billion into the economy. Ron Paul went on to insist Fed's policy will end with a catastrophic dollar crisis. The surge in cross-border lending has come to an abrupt halt due to contraction of approximately $100 billion in lendings to banks in eurozone. This will put countries to difficulties dependent on cross border flow. The Bank of International Settlement (BIS) said cross border lending grew after the collapse of Lehman Brothers.
There have been significant contraction of cross border lending in Greece, Portugal, Ireland and Spain. China is the biggest beneficiary of the cross-border lending. China will step up efforts at containing inflation in the wake of price jumping by more than five percent in November. Government's goal is to battle inflation without jeopardising growth.
Strategic economic restructuring will be accelerated and stabilising price will be given more importance, a policymaker said. China's turbocharged economy has raced over all others. But economists are now airing fears that China pillar of strength during global financial meltdown will face difficulties ahead. China's surge could be halted by soaring inflation, mounting government debts and a possible asset bubbles, they warned. Two Credit Rating Companies Moody's and Fitch Ratings have said China is poised for growth.
A slowdown in China now growing at 10 per cent would be a serious blow to the global economy since China's voracious demand for natural resources is helping prop up growth in Asia and South America even as the US and EU struggle, an analyst said. A large part of United States has been lashed by snowfall. States like Milennesota and Chicago have recorded four tonnes of snowfall during the past few days. The United States is passing through a severe cold wave.